PSH vs QQQ
PSH vs QQQ
PGIM Short Duration High Yield ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PSH offers more diversification with 364 holdings.
Side-by-Side Comparison
| Metric | PSH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $173M | $455.8B | |
| Dividend Yield | 7.18% | 0.41% | |
| Holdings | 604 | 108 | |
| YTD Return | -1.18% | +18.34% | |
| 1Y Return | +0.74% | +28.94% | |
| 3Y Return (annualized) | - | +25.28% | |
| 5Y Return (annualized) | - | +15.22% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -14.0% | -83.0% | |
| Fund Family | PGIM Investments | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 14, 2023 | Mar 10, 1999 |
PSH vs QQQ Performance
PGIM Short Duration High Yield ETF (PSH) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PSH returned +0.74% while QQQ returned +28.94%. Year to date, PSH is down 1.18% versus a gain of 18.34% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.7% for PSH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -14.0% for PSH and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSH charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, PSH currently yields 7.18% against 0.41% for QQQ.
Holdings Overlap
PSH and QQQ share 0 holdings out of 467 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSH or QQQ?
PSH has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, PSH or QQQ?
Over the past year PSH returned +0.74% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), PSH annualized -0.36% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, PSH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for PSH. Worst drawdown: PSH -14.0% vs QQQ -83.0%.
Should I hold both PSH and QQQ?
PSH and QQQ have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSH and QQQ?
PSH and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 467 unique securities.
Which pays a higher dividend, PSH or QQQ?
PSH yields 7.18% while QQQ yields 0.41%, so PSH currently pays the higher dividend yield.
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